September production generated the following activity in Janik Automotive ToolJa

Question

September production generated the following activity in Janik Automotive ToolJanik Automotive Tool's work in process inventory:

Production was completed in September, but is not recorded yet; it consists of Jobs B81 and G65, with total costs of $45,000 and $38,500, respectively.

Requirements

1.Compute the balance of work in process inventory at September 30.

2.Prepare the journal entry for the production completed in September.

3.Prepare the journal entry to record the sale (on credit) of Job G65 for $51,000. Assume a perpetual inventory system.

4.What is the gross profit of Job G65? What other costs must this gross profit cover?

September 1 Balance 19,500 Direct materials used 31,500 Direct labour assigned to jobs 36,000 MOH allocated to jobs 15,500

Explanation / Answer

Req 1: Beginning balance in WIP 19500 Add: Material ccost added 31500 Labour cost added 36000 OH applied 15500 Total cost 102500 Less: Cost of goods completed -83500 ($45000+38500) Ending WIP 19000 Req 2: JOURNAL ENTRY: Finished Goods Inventory Dr. 83500       Work In process Inventory Account 83500 Req 3: JOURNAL ENTRY: Accounts receivable Dr. 51000      Sales revenue 51000 Cost of Goods sold Dr. 38500     Finished Goods inventory 38500 Req 4: Gross profits must cover cost like: 1. Under-applied OH, if any. 2. Selling and Marketing expense. 3. Administrative expenses.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.